Headwinds for Qatar Airways

Qatar

Airways has announced a pre-tax loss of $43 million, even as the airline continues to weather the effect of a Gulf blockade on the tiny state. The airline says the year has been “the most challenging” in its history, 10 of the 12 months being affected by the blockade imposed by several Gulf states in June 2017. Qatar Airways says the “illegal” blockade had a detrimental effect of 19% on passenger payload, and earnings were affected by longer flight times. This is a direct result of airspace restrictions arising from the blockade and the airline had to close 18 major routes after its operations to the states involved, including Bahrain, Egypt, Saudi Arabia and the United Arab Emirates, were stopped.

However, Qatar Airways opened 14 new destinations during the financial year but the carrier accepts that such new routes will involve some investment to establish market presence.